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Ahmed treated himself as owner of all of the nominee
entities and freely intermingled their financial and business
affairs with his own and without regard to their corporate
status.
Ahmed would pay his personal expenses and expenses of
entities he controlled with funds from his other controlled
entities. For example, Ahmed used checks written on K & M’s bank
account to pay his personal credit card bills and the mortgage
and property taxes on his personal residence. Also, during at
least 1995 and 1996, Ahmed cashed checks payable to K & M and
diverted the check proceeds to his personal use.
Employees of the pharmacies, the clinics, and the lab were
instructed by Ahmed to leave in Ahmed’s office at night cash
sales proceeds of the pharmacies, the clinics, and the lab.
Ahmed then would deposit only a portion of the cash sales
proceeds into the bank accounts of his nominee entities, and
Ahmed would divert the undeposited cash to his own personal use.
Ahmed engaged in “churning” lab managers. Ahmed would
attract new managers to the lab by promising them above-market
salaries. Ahmed would not pay the new managers, and when they
complained, he would fire them. At least two of the above lab
managers were successful in making claims against Ahmed for
unpaid wages.
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